Well, it only took two days after the initial update but Xbox Live seems to be back to normal again. According to the support page on Xbox.com the service is fully functional and thank goodness!
Xbox Live is sure to be tested this Tuesday when Grand Theft Auto IV hits store shelves. Will the service be up to the task? We'd like to think the tech ninjas at Microsoft have been preparing for this very situation, but don't ask us to put money on it. What? Gambling is wrong, that's why.